More Indian news outlets are now reporting the possibility that SunEdison will back out of its acquisition of Indian wind energy independent power producer Continuum Wind Energy.
Leading business daily Economic Times has reported that the US-based renewable energy project developer may not go ahead with the acquisition of Continuum Wind Energy, after SunEdison had announced earlier this year plans to acquire the wind energy company for an estimated $600 million.
The deal was termed as one of the most significant in terms of exhibiting global confidence in the Indian renewable energy market. Continuum’s acquisition would have given SunEdison control of over 400 MW of wind energy assets (operational as well as under construction) and, more significantly, a crucial footprint in the Indian wind energy market.
The likelihood of this deal not going ahead will, however, not be a reflection on the Indian renewable energy market but on SunEdison’s financial condition.
Last month, the company announced that it will lay off 15% of its workforce. SunEdison’s stock price at the New York Stock Exchange has plummeted from a high of $31.66 on 20 July to $3.00 on 20 November, while shares of its yieldco, Terraform Power have also plummeted from this year’s high of $42.66 to less than $10. The company reported a loss of $263 million for the second quarter following a spree of acquisitions around the world. In addition to acquiring several renewable energy assets, the company also reported record capacity of 1.9 GW under construction in its second quarter earnings report.
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